Asian stock markets fell back on Friday, with South Korea and Japan leading declines as traders pared positions after this week’s technology-driven rally. The move lower followed fresh investor concern around AI-related hardware costs after Apple Inc increased prices on Macs and iPads to reflect higher memory and storage expenses.
The regional slide mirrored a weaker lead from U.S. markets, where the Nasdaq 100 lost earlier gains despite strong results from Micron Technology. Apple shares fell more than 6%, fueling caution among technology investors. Overnight, Nasdaq 100 futures were off about 0.8% and S&P 500 futures slipped roughly 0.4% as market participants reduced tech exposure heading into quarter-end.
South Korea and Japan bear the brunt
South Korea’s KOSPI plunged 5.7%, a decline of more than 508 points, while Japan’s Nikkei 225 dropped 3.9%, losing over 2,800 points as traders unwound positions following Thursday’s AI-fueled advance. The reversal occurred even after Micron’s strong earnings earlier in the week, with sentiment souring after Apple warned that rising memory and storage costs are being passed on to customers via higher prices.
Major South Korean chipmakers were among the worst performers. Samsung Electronics Co Ltd and SK Hynix Inc each fell by more than 6% after local media reports indicated both firms are preparing significant long-term increases in semiconductor capacity investment. Their retreat made them some of the largest drags on regional benchmarks after the outsized gains they registered a day earlier.
Japan tech investor hit as OpenAI IPO report weighs
SoftBank Corp plunged roughly 13% after reports suggested OpenAI may push a potential initial public offering back to 2027, removing a near-term catalyst for the Japanese investor. At the same time, Tokyo’s June inflation figures reinforced that price pressures remain. Core consumer prices in Tokyo were unchanged at 1.6% year-on-year, while the core-core measure accelerated to 1.1% from 0.7%, keeping expectations alive for further steps toward Bank of Japan policy normalisation.
Wider regional moves and macro considerations
Losses were broadly dispersed across Asia. Hong Kong’s Hang Seng fell about 2%, China’s CSI 300 slid 2.6% and the Shanghai Composite declined 1.7%. The MSCI Asia ex-Japan Index lost nearly 2.8% on the day. By contrast, Australia’s S&P/ASX 200 was little changed higher, a move attributed to Tokyo inflation data reinforcing the view that the Bank of Japan will continue gradual policy normalisation.
Other markets in the region moved unevenly: Singapore’s FTSE Straits Times dropped 0.7%, Indonesia’s Jakarta Composite slipped 0.4%, while Thailand’s SET Index gained 0.7%, one of the few indexes to rise. Indian markets were closed for the Muharram holiday.
Investors also continued to process signs that expectations for Federal Reserve tightening have eased after a softer-than-expected U.S. PCE inflation reading. Corporate commentary was mixed: Qualcomm’s upbeat long-term AI revenue forecast provided some support to sentiment even as technology shares remained volatile. Energy markets showed easing Middle East supply concerns, with Brent crude trading below $75 a barrel.
What to watch next
Market participants will likely remain focused on further corporate updates related to AI demand and cost pass-throughs, central bank policy signals, and any new news around major technology investments or IPO timelines that could influence investor positioning heading into quarter-end.